The American Telephone and Telegraph Divestiture: Background, Provisions, and Restructuring

On January 1, 1984, The American Telephone and Telegraph Company (AT&T) divested itself of a major portion of its organizational structure and functions. Under the post-divestiture environment the once fully-integrated Bell System is now reorganized into the "new" AT&T and seven Ladependent regional holding companies -- American Information Technologies Corp., 3ell Atlantic Corp., 3ell-South Corp., NYNEX Corp., Pacific Telesis Group., Southwestern Bell Corp., andU.S. West, Inc. The following analysis provides an overview of the pre- andpost-divestiture organizational structure and details the evolution of the antitrustaction which resulted in this divestiture.

On January 1, 1984, The American Telephone and Telegraph Company (AT&T) divested itself of a major portion of its organizational structure and functions. Under the post-divestiture environment the once fully-integrated Bell System is now reorganized into the "new" AT&T and seven Ladependent regional holding companies -- American Information Technologies Corp., 3ell Atlantic Corp., 3ell-South Corp., NYNEX Corp., Pacific Telesis Group., Southwestern Bell Corp., andU.S. West, Inc. The following analysis provides an overview of the pre- andpost-divestiture organizational structure and details the evolution of the antitrustaction which resulted in this divestiture.